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Broader mkt stages recovery; Nifty SmallCap, MidCap indices rally up to 3%

The Nifty SmallCap index surged 2.70 per cent, or 410.7 points, to hit an intraday high of 15,579.15. Similarly, the Nifty MidCap index increased 1.72 per cent to an intraday high of 50,609.25

Markets, Stock market, sensex, stock market indices

Illustration: Ajay Mohanty

Tanmay Tiwary New Delhi

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Broader markets recovery: After a period of heavy correction in the recent past, the Nifty MidCap and SmallCap indices saw a slight recovery on Wednesday, February 19, 2025.
 
The Nifty SmallCap index surged 2.70 per cent, or 410.7 points, to hit an intraday high of 15,579.15. Similarly, the Nifty MidCap index increased 1.72 per cent, or 857.8 points, to an intraday high of 50,609.25.
 
In the Nifty SmallCap 100 index, 80 stocks were in the green, while 19 were in the red, and 1 stock remained flat at the time of publishing this report. Among individual stocks, Aegis Logistics was the top performer, rising nearly 12 per cent, followed by GRSE (11 per cent), Data Patterns (8 per cent), Jupiter Wagons (7.5 per cent), Redington (7 per cent), and Ircon International (7 per cent).
 
 
Likewise, in the Nifty MidCap 100 index, 79 stocks were trading in positive territory, while 21 were in the negative. RVNL led the charge with a 12 per cent gain, followed by Mazagon Dock (9 per cent), BSE (8 per cent), Cochin Shipyard (7 per cent), and Suzlon (6 per cent), with IREDA and Bharat Dynamics both up 5 per cent each.
 
Ravi Singh, senior vice president of retail research at Religare Broking said that while the MidCap and SmallCap indices showed some recovery from lower levels, these gains should not be seen as a trend reversal. Investors should align their strategy with their risk appetite and investment horizon, avoiding the temptation to invest blindly at current prices. It’s crucial to wait for the market to settle at these levels.
 
Despite this rebound from strong support, Singh noted that the broader markets remain in negative territory, having faced numerous challenges recently. 
 
As of February 19, 2025, the SmallCap Index and MidCap Index were down 21.45 per cent and 17.35 per cent, respectively, from their all-time highs. 
 
“For long-term investors, it’s advisable to allocate funds gradually and consider investing more if the indices hit another bottom,” Singh added. 
From a technical perspective, Ajit Mishra, SVP of research at Religare Broking said the broader indices are rebounding today after recent underperformance, primarily driven by oversold conditions and the presence of a key support zone, such as the 100-week exponential moving average (WEMA) in the midcap index. 
 
However, he advises against reading too much into a single-day recovery and recommends waiting for further confirmation.
 
Earlier this week, SmallCap stocks faced intense selling pressure, with the Nifty SmallCap 100 and Nifty SmallCap 250 indices entering a bear market phase last week, having dropped more than 20 per cent from their peak levels. READ MORE

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First Published: Feb 19 2025 | 2:25 PM IST

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